Published: 2011-07-07 10:00:55 CEST
Nasdaq Commodities
Exchange and Clearing Information

no 38/11 Statkraft Energi AS given violation charge for breach of the Market Conduct Rules

Lysaker, 7 July 2011

NASDAQ OMX Oslo ASA (the exchange) has issued a violation charge to Statkraft Energi AS in the amount of NOK 400,000 for breach of the Market Conduct Rules.

NOK 250,000 of the violation charge is made conditional with reference to the reaction from Nord Pool Spot relating to the same incident.

On 27 October 2010, Statkraft Energi AS sent erroneous Elspot nominations to Nord Pool Spot. The nominations resulted in 4,000 MW too much sale in each hour at any given price in Norway for delivery on 28 October, which led to significant price movements both in the physical and the financial market. Market Surveillance has conducted extensive investigations following the incident and the Disciplinary Committee has made a recommendation to the board of the exchange. Please find attachment for the recommendation from the Disciplinary Committee (note: Danish language).

The exchange has concluded that the incident constitutes market manipulation and that Statkraft Energi AS has acted with negligence in respect of the technical error which caused the incident. The exchange has not found any evidence that Statkraft Energi AS acted with intent or had any illegitimate purpose by the erroneous nominations. The exchange also finds it mitigating that Statkraft Energi AS has proactively worked to explain the incident and has publicly admitted its error and made measures to prevent such errors from reoccurring.

The exchange has furthermore concluded that Statkraft Energi AS was in an insider position in relation to three exchange transactions entered into the Nordic power derivatives market, and that Statkraft Energi AS then has breached the prohibition against insider trading. The transactions were made after the erroneous nominations were discovered, but prior to the information about the errors becoming public.

The exchange deems that information about the errors was likely to have a significant effect on the prices. The transactions were furthermore likely to be beneficial to Statkraft Energi AS in light of the price effect of the inside information.

Nord Pool Spot has also issued a violation charge for market manipulation in relation to the same incident. Information from Nord Pool Spot can be found here.
 

For further information, please contact NASDAQ OMX Commodities:

Geir Reigstad, Senior Vice President, phone +47 6710 8410/+47 9084 6735

Press contact:

Sara Aadnesen, Director Communication, phone +47 6752 8080/+47 9060 0759


About NASDAQ OMX
The NASDAQ OMX Group, Inc. is the world's largest exchange company. It delivers trading, exchange technology and public company services across six continents, with more than 3,500 listed companies. NASDAQ OMX offers multiple capital raising solutions to companies around the globe, including its U.S. listings market, NASDAQ OMX Nordic, NASDAQ OMX Baltic, NASDAQ OMX first North, and the U.S. 144A sector. The company offers trading across multiple asset classes including equities, derivatives, debt, commodities, structured products and exchange-traded funds. NASDAQ OMX technology supports the operations of over 70 exchanges, clearing organizations and central securities depositories in more than 50 countries. NASDAQ OMX Nordic and NASDAQ OMX Baltic are not legal entities but describe the common offering from NASDAQ OMX exchanges in Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius.

For more information about NASDAQ OMX, visit http://www.nasdaqomx.com. *Please follow NASDAQ OMX on Facebook (http://www.facebook.com/pages/NASDAQ-OMX/108167527653) and Twitter (http://www.twitter.com/nasdaqomx).

About NASDAQ OMX Commodities
NASDAQ OMX Commodities is the brand name for the NASDAQ OMX Group’s worldwide suite of commodity related products and services. The NASDAQ OMX Commodities offerings include power, natural gas and carbon emission markets and clearing services. NASDAQ OMX Commodities is a trademark of the NASDAQ OMX Group, Inc.

NASDAQ OMX Commodities Europe is the trade name of NASDAQ OMX Oslo ASA which is authorized as a commodity derivatives exchange by the Norwegian Ministry of Finance and supervised by the Norwegian Financial Supervisory Authority. All trades with NASDAQ OMX Commodities Europe are subject to clearing with NASDAQ OMX Clearing.

NASDAQ OMX Clearing is the trade name of NASDAQ OMX Stockholm AB which is authorized and supervised as a multi-asset clearinghouse by the Swedish Financial Supervisory Authority in Sweden as well as authorized to conduct clearing operation in Norway by the Norwegian Ministry of Finance.

For more information, visit www.nasdaqomxcommodities.com.

NASDAQ OMX's Cautionary Note Regarding Forward-Looking Statements
The matters described herein contain forward-looking statements that are made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements about NASDAQ OMX's products and offerings. We caution that these statements are not guarantees of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements involve a number of risks, uncertainties or other factors beyond NASDAQ OMX's control. These factors include, but are not limited to factors detailed in NASDAQ OMX's annual report on Form 10-K, and periodic reports filed with the U.S. Securities and Exchange Commission. We undertake no obligation to release any revisions to any forward-looking statements.

This document is being directed solely at and may only be communicated to persons: (i) who have professional experience in matters relating to investments as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "FPO") or, (ii) who are high net worth companies, unincorporated associations and trustees of high value trusts within Article 49(2)(a)-(d) of the FPO, or (iii) to whom it may otherwise be lawful to distribute it (all such persons together being referred to as "Relevant Persons"). Any investment activity to which this document relates is available only to Relevant Persons and will be engaged in only with Relevant Persons.


recommendationdisciplinarycommittee.pdf